2 1/2 c. flour
1/2 t. salt
2 sticks (1 c.) unsalted butter
3 oz. cream cheese
1 cup sugar
1 egg yolk
1 T. vanilla
2 rolls of assorted color lifesavers, crushed by color
Sift together flour and salt. In mixer, cream butter for 1 minute. Add cream cheese, and beat 2 min. Add sugar, and beat on medium-high for 3 min. Beat in egg yolk and vanilla until smooth.
Reduce speed to low, and add flour in three additions, scraping down sides of bowl.
Turn dough onto a floured surface. Form into two portions and wrap in plastic wrap. Chill dough for 3 hours or up to 3 days.
Preheat oven to 325. Line cookie sheets with parchment. Let refrigerated dough rest for 10 min. Roll out dough, and cut with cutters dipped in flour. Put cut cookies on parchment. Smash lifesavers, and spoon a tiny bit of crushed candy in cutout places of each cookie. Bake 10-14 minutes (I baked mine for 11 minutes). Wait a few minutes before removing cookies from cookie sheets. Decorate with icing, sprinkles or small candies.